Overview and Investment Objectives
Date: Mon, 17 September 2018 | Price: 2.9422
Clarity Funds Management Limited was established in 2007 and now offers six investment funds. Clarity has the ability to appoint external investment managers or advisers.
The objective of the Clarity Global Shares Fund (Fund) is to achieve returns over the medium to long term (at least a period of five years) by investing in a portfolio of well-diversified securities listed on sharemarkets around the world. These assets may include listed equities, exchange traded funds, currency positions and cash. Clarity will work with competent global investment managers to manage this Fund.
We use the MSCI All Country World ex-Tobacco Index (net dividends reinvested), measured in NZ dollars, 50% hedged to NZ dollars to measure relative performance (net of fees and expenses). The focus is to generate a return that exceeds the benchmark index. The Fund is actively managed, which means the holdings may differ considerably from the relevant benchmark index. It has a value focus with low tracking error to the index.
Clarity has appointed global investment manager MFS International Australia Pty Limited (MFS Australia) as the investment manager for the Fund. MFS Australia has constructed the portfolio in consultation with us and in accordance with the Fund’s objectives set out below. The Fund’s custodian will hold all the assets managed by our external managers.
Boston-based MFS, which began in 1924 as Massachusetts Investment Trust, started America’s first mutual fund. Our investment mandate combines MFS Australia’s fundamental and quantitative research, focusing on high quality, large-cap global companies selling at reasonable valuations with an unrecognised catalyst.
This Fund may be suitable for those investors who are comfortable with a higher risk in the short-term for improved longer-term returns.
The target asset allocation ranges shown below are the expected average asset mix of the Fund over the long term. The Fund will be managed within the following given ranges.
Cash and cash equivalents
Including short-term securities and deposits
|5||0 - 20|
New Zealand Equities
Any company listed on the NZX Stock Exchange
|0||0 - 10|
Any company listed on the Australian Stock Exchange
|0||0 - 10|
Any company listed on any other recognised Stock Exchange
|95||0 - 100|
Any property company listed on the NZX Stock Exchange or Australian Stock Exchange
|0||0 - 10|
Via exchange traded fund(s) (ETF) and currency hedging
An ETF is a marketable security that tracks published market indices
|0||0 - 5|
The Fund is typically fully invested in equity securities, either directly or via investment in other funds. Securities of companies which are traded or due to be listed on international stock exchanges may be considered for inclusion in the Fund.
When we invest in international assets denominated in foreign currencies, we generally enter into foreign exchange contracts to reduce or increase the Fund’s exposure to the New Zealand dollar. We do not make any cash distributions from the Fund.
Clarity Funds Management Limited is the issuer and manager of the Fund. We work together with The New Zealand Guardian Trust Company Limited, our Supervisor, to act in the best interest of investors.
Fund application money and investments are held by the Supervisor or their appointed custodian. The Fund has an independent registrar and an administrator who sets the daily price. The Fund is audited annually.
The Fund is governed by the Trust Deed dated 5 September 2016 and the Establishment Deed dated 15 March 2017. The Fund is established within a registered managed investment scheme under the Financial Markets Conduct Act 2013 (FMC Act), scheme number SCH10600 (Scheme). The operation of the Scheme is governed by the FMC Act.
You can download a copy of the Product Disclosure Statement and Fund Update below for more detailed information about the Fund and for the Fund’s application form.
You can review a copy of the Trust Deed, Product Disclosure Statement and other important Scheme documents at any time by either contacting us or electronically on the Scheme's register on www.business.govt.nz/disclose.
Quarterly Fund Commentary
Looking forward, economic and earnings data coupled with style and factor leadership suggest that we are in the later stages of the market and economic cycle.
Quarterly Fund Update
This update provides you with information about the Fund including its performance and investment mix.